Music%2BTeachers%2BInc%2BCase - Segment Reporting,...

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555 I Segment Reporting, Decentralization, and the Balanced Scorecard 3. Prepare a new contribution format segmented income statement for May. Show a Total col- umn as well as data for each region. In addition, for the company as a whole and for each sales region, show each item on the segmented income statement as a percent of sales. 4. Analyze the statement that you prepared in part (3) above. What points that might help to improve the company's performance would you bring to management's attention? CASE 12-28 Service Organization; Segment Reporting [LOll Music Teachers, Inc., is an educational association for music teachers that has 20,000 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's journal, Teachers' Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. Revenues . $3,275,000 Expenses: Salaries . 920,000 Personnel costs . 230,000 Occupancy costs . 280,000 Reimbursement of member costs to local chapters . . 600,000 Other membership services . 500,000 Printing and paper . 320,000 Postage and shipping . 176,000 Instructors' fees . 80,000 General and administrative . 38,000 Total expenses . 3,144,000 Excess of revenues over expenses . $ 131,000 Cases [)~eJCce' The board of directors of Music Teachers, Inc., has requested that a segmented income state- ment be prepared showing the contribution of each profit center to the association. The association
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Music%2BTeachers%2BInc%2BCase - Segment Reporting,...

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